Pound to Canadian dollar rates have been oscillating between the high 1.60s and mid 1.70s in recent weeks, on swaying optimism on both Brexit and the Trade Wars. The price of Oil too, has been an important function of the value of the Canadian dollar in recent weeks. As a key exporter of Oil, the value of the Canadian currency will often be determined and shaped by important developments in the price of Oil.
Rise in Oil price boosts Canadian dollar rates
The price of Oil has been rising which has acted as a booster for the Canadian dollar and should its value rise higher, it would only see the Canadian currency get stronger. This expectation may well continue in the future with the market on Oil very unpredictable but perhaps pointing towards further rises.
2019 has been a tumultuous year on the currency markets and the GBP/CAD rate as investors grapple with Brexit and the Trade Wars. The outcome on both of these events will likely shape the potential direction on the currency pairing, clients with a position to buy or sell GBP/CAD could also receive a number of clues this week as to the short term movements.
GBP/CAD Forecast: Important economic data due this week
This week sees the release of a series of important UK and Canadian dollar releases which include UK Unemployment data on Wednesday, and also Canadian Retail Sales on the Friday. With bigger decisions on Brexit happening on the 27th when the UK Parliament have the next meaningful vote on Theresa May’s Brexit plan, and no clear idea on the next shape of the Trade Wars discussions, the market might take its clues from these releases.
For more information on the upcoming events to shape the latest direction for GBP/CAD rates, please do contact me directly, I would not be surprised to see the GBP/CAD pairing taking a dip below 1.70 and a good strategy at present for those buying Canadian dollars is to buy when above 1.70, and sell when below.
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